Brussels insists that Germany should stimulate domestic demand - Público.pt

Vice President of the European Commission Olli Rehn confirmed on Monday that the institution will this week announce it opens a “thorough investigation” to the trade surpluses of Germany. The eurozone, he insisted, would have advantages with an increase in domestic demand in its largest economic power.

Brussels has already raised the veil on a possible investigation after Barroso stated that Germany was the country “that most benefited from the virtuous circle driven by the euro.”

For the EU Commissioner for Economic and Financial Affairs, who writes about the German case on its official blog, the single currency area has to find a favorable solution for both its leading economy, as for all 17 countries . And this way, understand the European Commission, undergoes a correction of this imbalance in trade surpluses and current account.

According to forecasts of Brussels, Germany will experience a surplus trade up 6% of the Gross Domestic Product (GDP) for three consecutive years. The European Commission also points to one German current account surplus of 7% of GDP in 2013, predicting that this indicator is set to 6.6% next year and 6.4% in 2015.

The fact that two indicators are above the threshold of 6% of GDP for three consecutive years is considered in the light of the European Commission, a sign of macroeconomic imbalances, with risks to the stability of the countries of the single currency.

“Since these important issues deserve further analysis, the Commission will have to decide this week begins a thorough review of the German economy in the European procedure for macroeconomic imbalances,” said Olli Rehn.

The list of countries with excessive macroeconomic imbalances will be published on Wednesday. To confirm the investigation, the EU executive will formalize a recommendation that the German Government apply concrete measures to correct this imbalance.

Rehn also emphasizes that not only the economic policies in Germany that have a direct and large the rest of the eurozone. The two major powers (Germany and France) are, together, an element “key to recovery in growth and employment in Europe,” he said.